Federative Republic of Brazil Completes Second SEC-Registered Debt Offering and First Liability Management Transaction of 2017

October 16, 2017

On October 13 and October 16, respectively, the Federative Republic of Brazil completed its second SEC-registered debt offering of 2017 and its first liability management transaction of the year, completing a one-day cash tender offer for certain of its outstanding bonds and a simultaneous global offering of $3,000,000,000 aggregate principal amount of its 4.625% global bonds due 2028.

Tendering bondholders who submitted indications of interests to purchase the new bonds, in what is referred to as a “switch,” were considered “preferred tenders” in the tender offer. Tenders of approximately $1.6 billion in outstanding bonds were accepted by Brazil.

Brazil's 4.625% global bonds due 2028 have an effective yield of 4.675%, or 235 basis points over the reference Treasury yields. Application will be made to list the 2028 global bonds on the Luxembourg Stock Exchange and to have the 2028 global bonds admitted to trading on the Euro MTF Market.

The S&C team was led by Christopher Mann, along with Ana González and Carl Lundeholm. Robert Risoleo advised on opinion and securities law matters. Jeffrey Hochberg, Eric Wang, Saul Brander and David Simins advised on tax matters. Tracey Russell advised on FINRA matters. Kirsten Rodger advised on U.K./EEA matters. Lars Rueve advised on German matters. Carmen Leung advised on Hong Kong matters. Megan Colville assisted in the early stages of the transaction.